Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements. Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their findamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal. However, like ...